Question
Imagine a Cournot game with two firms (A and B). The demand curve in this market is P=280-Qa-Qb. Each firm has marginal cost equal to
Imagine a Cournot game with two firms (A and B). The demand curve in this market is P=280-Qa-Qb. Each firm has marginal cost equal to $40.
a. How many units will each of these firms produce in equilibrium? (i.e. the production of one firm. Not both firms)
b. Imagine a Cournot game with two firms (A and B). The demand curve in this market is P=280-Qa-Qb. Each firm has marginal cost equal to $40. What is the equilibrium market price?
c. Imagine a Cournot game with two firms (A and B). The demand curve in this market is P=280-Qa-Qb. Each firm has marginal cost equal to $40.
Assume these firms have no fixed costs. How much profit does the industry make? (be sure to add the profit together between the two firms) Please answer those questions
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Global Marketing
Authors: Johny K Johansson
5th Edition
0073381012, 9780073381015
